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Use the following information to answer the nextTHREEquestions: The Chinese buffet food restaurant business in a local market is monopolistically competitive. Suppose that each existing
Use the following information to answer the nextTHREEquestions: The Chinese buffet food restaurant business in a local market is monopolistically competitive. Suppose that each existing and any new Chinese buffet food restaurant has a total cost function given by TC=10Q+4000, where Q is the number of buffet meals. Each restaurant currently faces a demand curve of P=100-Q, where P is the price of a buffet meal. 26. How much profit is each restaurant currently making? (+/-) __________$ ______________ 27. The number of firms will (increase/decrease) _______________ in the long-run. 28. Output per firm will (increase/decrease) _________________ in the long-run
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